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tv   Varney Company  FOX Business  January 30, 2013 9:20am-11:00am EST

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a scoreless tie highlights. that is the joke. imus: a briefing coming up, and we will talk to the blondes.
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♪ >> "imus in the morning." diane: >> there is serious money being made in stocks, that is good. a serious slowdown in the economy, that is bad. that is how we start today, the good and the bad. good morning, everyone.
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the news we are just not growing. our economy is contracting. the economy is shrinking. what a way to start the second term and the president will take the heat with four years into a so-called recovery and failing to uncover real prosperity. now the good, good news on stocks. most people have a piece of a stock market. her money has been on a tear. with housing up as well, maybe middle america will get a wealth effect. "varney & co." about to begin. money. which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on hisortfolio.
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and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritde.
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stuart: good morning, "varney & co." viewers. big trouble for boeing. in a report from japan says the batteries were a concern months before the first reported fire. in fact they had to replace 10 of them well before the
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dreamliner was grounded. the main battery experienced an unexpected drop in power and forced an emergency landing. this morning boeing announced solid profits and yet sticking with the dreamliner production planning no changes to its production schedule. so here's a question, does boeing know what is wrong? they have to answer that question before they have a solution. and what about the stock? chances are you own it one way or another. premarket price please. nicole: you own is some way or otherwise, you will be happy, the stock is higher. of course, this year has been volatile, however looking above $34 today. stuart: investors will take that one for now. the dreamliner remains grounded. remember this from transportation secretary ray lahood. >> i believe this plane is safe
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and i would have absolutely no reservation of boarding one of these planes could take a flight. these planes are safe. stuart: that was two weeks ago. just yesterday he announced he will step down from his position as soon as a successor is confirmed. at the top of the hour, big budget cuts, and the military. no deal in congress, billions of dollars at stake but one armed forces working is the drone war. terrorists have no place to hide. retired army general joins the company at 10:00 a.m. eastern. we ask the general what defense means for our security. charles payne always says to watch a stock after the chief steps down. so take a look at chesapeake energy. the top guy will retire as chief executive on april 1, aubrey mcclendon invested personally in the company drilling operations
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and is under investigation for mixing personal and company business. he is leaving taking a golden parachute of $50 million that goes with him. so let's see how the stock performs today. this is do-or-die day for research in motion. we will ask if it is good enough to save rim. and what happened between jon stuart and rob custis on "the daily show" last night? twins. i didn't see them coming. i have obligations. cute obligations, but obligations.
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two items for stock investors consideration. gross domestic product contracted, the economy shrank at an annualised 0.1% rate at the end of last year. second item, this afternoon we will find out whether or not fed chief ben bernanke will keep printing money. could be that contraction in the economy is being ignored because everybody thinks ben will keep printing up a storm. we will get notes on that at 2:15 eastern this afternoon. we are into the trading session and off and running and only deron five points despite the gdp news. first of the gate amazon, stock coming off of an all-time high, topics off 15% and shares back.
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nicole: $21. this is a big move for amazon. 8%, we knew this morning that the hours are all on board with new price targets of 330, 350, what surprised everybody on wall street, the surprise was the gross margin expansion according to one analyst. holiday, revenue rose 22%, you know they have been spending a lot of warehouses and new products. >> this is an example of a company that is rewarded for spending a lot of money even though that reduces its profit margin. some investors will reward that kind of company instead of rewarding them they cost. 281 on amazon. nicole: you spend more you get more. stuart: it is do or die date for the blackberry. the company rim unveils the blackberry x half-hour from now. here are the shares as they open up a little bit, close to $16 a
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share. they fall in the last couple weeks but today almost 16 prior to the launch of the blackberry x. let's go to tech guru fox and friends host claymores who is at the blackberry event in new york. do you know enough about this thing? you know enough about it to say this is going to save blackberry? >> they have an enormous hill to climb. i always like to be a little conciliatory, it could be the device that ends up saving blackberry. they have an enormous skill decline because mobile phone space, all about you have to wow all consumers will there be enough new features to all consumers? stuart: i disagree with you. the blackberry is a business. i have got one, fox has won and we use them for e-mailing and texting.
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that is what we want them for. >> is that enough? think about there are enough enterprise folks, and installed base of eighty million users but you need to attract new users. you can't just have a person like you who wants to upgrade is blackberry after waiting four years. unique to get into the teenagers. i don't know, i tweeted that i was going to be here. a viewer wrote me better bring up zillow. will be a snooze fest. iphones are better. what is a blackberry? blackberry is a neanderthal trying to keep up with evolution. these are the kings' consumers are saying, very little interest, blackberry, they haven't released a phone in 18 months. they delayed and delayed to get these features out. facebook is not going to have an application on this. they will not develop an apps, you can develop it yourself.
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stuart: at the moment you are on the die size of the fence. do or die, you are saying this thing, the company basically shrivels. >> you follow my course of closely and you know what microsoft's up climb can do to introduce a brilliant operating system and windows phones. they carved out such a small niche of the market and that is microsoft, blackberry against the same pressure. if they come out with a while operating system like microsoft did they might carve out a little bit of that niche and start to gain a foothold. when you are against samsung and apple are in a world of hurt. stuart: we are going to follow your tweets and put them on a banner at the bottom of the screen. you are never away from the job. you will be on "varney and company" constantly. lucky you. >> inside the event tweeting. stuart: good to see you.
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another good news/bad news scenario for your money. the good news is the market hitting record levels and more of you are investing in it. the bad news, more baby boomers are taking care of their adult children and their own elderly parents at the same time and draining their 401(k)s to pay the bills. we have more on what we will call the sandwich generation at the top of the hour. let's see where chesapeake energy is trading? charles always says watch stock when the ceo stepped down. the ceo stepped down at chesapeake. where is the stock? nicole: charles is right on the money at this one. so many stocks, it is up 10% today. the question was whether or not he and the board had different psychological abuse for the company. now it seems unanimous that they will not sell off the company, at least assets and that is likely to pick up. this selling on different parts of the company, that may pick
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up. a lot of positives, we are in weight and see mode. there are cautionary tales, they are saying they are concerned if they can sell enough assets to fund their spending, the exposure -- back in the last one, limited inventory of premier oil assets. there are some lists of worries with mcclendon stepping down. stuart: nicole -- nicole: carl icahn is involved too. that is another wild card. stuart: thank you. dow industrials down seven points. we are at 13947, 200 away from the all-time high. jon stewart had his fair share of fun at my expense on his daily shows a you could imagine my delight when i saw this. >> is it the idea i have seen enough movies to notify going some place and do this -- >> take a look at -- right now wherever you look there's a commercial for a movie called
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bullet to the head. we are still in a culture -- >> working title. >> nice try. working title. can someone say awkward? in a commercial break before that interview there was a commercial for the new sylvester stallone movie bullet to the head. you remember violent movies were all over the playoffs two weeks ago and now john stewart, who is all for gun control but is having those ads on his program as he is speaking about gun-control. i have that as the subject of my take coming up at 10:15 this morning. ten:30, 9:37 right now. time is money. 30 seconds of all the other stuff. three sports stories i will discuss with brian killmeade in the next hour, alex rodriguez with a possible link to performance enhancing drugs. could that possibly avoid his albatross of a $114 million contract.
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ray lewis accused of using the air and water spray to recover from an injury. my interview with football star and matt smith was better than brian killneed's and i have the video to prove it. all that coming up later. we want to hear from you. send your e-mail to varney@foxbusiness.com. seven early mover is this wednesday morning. facebook reports earnings after the bell. the company is expected to show growth in its mobile apps business. stock is up 15% this year up $0.22 as of right now. charles always says what the change in management. we see a change in management at chesapeake. mcclendon stepping down and up 10%. cholesterol drug developed by isis pharmaceuticals approved by the fda, that stock is a. swiss insurance co. ace ltd. disappointing outlook, stock is down. lower profits at dolby labs that
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better than expected. of it goes. manufacturer keepchronic expect less moneyronic expect less moneyronic expect less monless moneyyronic expect less moneyronic expect less moneyonic expect less montronic expect less money coming and it is down. and it is of this the little, $41 right now. the dow is up two. the phil mickelson story will not go away. tiger woods left for low-income state can save him $100 million and our next guest is a financial analyst for the wealthy and, more examples of actual people who left california for greener pastures next. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help.
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stuart: dead flat for the dow, 200 from the all-time record high but look at the price of oil on the way up again, $97 a barrel now, approaching 98.
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here is the question. how much money would you save by moving from california to florida? how about $100 million. our next guest is in this a lexus, the rich moving from high tax states to lower tax states like texas, arizona, tennessee, florida. joining us is ed butowksi, welcome back to the program. you are going to tell me about your clients, no names. clients of yours on the move, calif. out, some place else. you have got a gentleman moving from orange county to where? >> right into dallas. his number one reason was carries no reason to pay, the ceo of public companies that i'm done, moved to dallas, got an apartment and got much smaller but paying nothing in income-tax is because in the state of texas is a big zero. stuart: he has saved an enormous amount of money. >> a very wealthy man and really symbolic of what is happening throughout california.
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not just the rich. you hear people saying get me out, another client in san diego, not an extraordinarily wealthy person but has done well, retiring, said i am done, and move to idaho. stuart: anybody else in california moving? >> another thing. i manage professional athletes. when they negotiate their contracts one thing becomes of is they will go to california is taxes. how much more will you pay me to be in california? it is a big discussion with all the states, with california and in new york but they talk about taxes. that never happened before. stuart: a sports figure, los angeles dodgers wants to attract a star pitcher, got to a over the market because they will pay money in taxes for the california -- >> exactly what happens. also moved the overall market. when people negotiate to other places where there are no taxes that comes into a because they
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always say what other players made going to the city's. stuart: can you really call it an exodus? that implies a mass migration. can you go that far? >> don't know it is an exodus. all the people moving or for what reason, but would be insane not to think about leaving. i have friends that live here ensure you do as well. the cost of living increase coupled with the amount of money you are paying in taxes you would be a fool not to leave california. stuart: numbers yesterday, wall street journal reporter said $3.5 million upper-middle-class people, middle and upper class people exiting out of california in the past couple decades. that is a lot of people. >> i love california to live there, look at the ocean for a while, the engine gets boring after a while. there is a price tag for that view and it is not worth it. stuart: top three locations the blood going to. number one is texas, two is florida, three is scottsdale, arizona. >> people want to be close to california. they go to scottsdale. former ballplayers and people playing in the off-season you'll
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find in scottsdale and fort lauderdale mainly and also right where i live in dallas. stuart: there is an income tax in arizona. >> they are willing to pay the income tax. they are not trying to avoid taxes. they are trying to be smart with their money. we want to do best where our money will do best for us. stuart: i was intrigued when he mentioned tennessee because that is becoming the retirement haven. it is cheap right now, very cheap. i don't believe there is a state income tax and i am told there are a flood of people getting in their special in northeastern fleeing the snow and extremes of winter and taxes. >> money will go where it is welcome and that is the story here. many as welcome in these places. they're not being punished. people will go there because they enjoy the lifestyle. stuart: this is one of the fundamentally most important stories in america today. high tax states losing population to no or low tax
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states. migration, tax migration. >> when this happens it puts more pressure on the other people who live there to come up with the money to pay the bills for those taxes so now we have a ripple affect. when people leave to put more pressure on the people who stay which means their tax rate will go higher. a ripple affect will get really ugly. stuart: california governor jerry brown says everything is fine. >> show so does obama and look at the gdp number. stuart: only the governors on fantasy island at the moment. welcome back, see you again soon. where are we with the price of gold this morning? up a fraction, oil up, bold up $15 an ounce, $16.77. public workers are just making cities go broke. entire nations running out of cash. the latest victim, zimbabwe of all places. elizabeth macdonald and charles payne are here with more cash in their pockets than the entire country has in the bank in zimbabwe. it is true.
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stuart: the white house is giving a rosy picture of the gdp report. despite a drop in growth a
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contraction of the economy, the white house points out this is an advance report, the first before several revisions that may come later. it is putting advanced in quotes. the statement goes on to blame hurricanes and the and points out all the growth over consecutive quarters for the last 3.5 years. that is a pretty weak response to a really bad report. charles: an extraordinarily weak. here's the other thing that is interesting. eventually came out, government spending is big so people tried to leap on that saying if you don't like government spending see what happens but on further examination that was all defense spending. nondefense spending was up. so we get back to sequestration, maybe -- we're talking serious hits to the gdp, couple with with the fact that consumers are saying payroll tax has people afraid. there is no way you can make this a good number. stuart: same old same old. we go up to 3% growth rate, then
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down we go all over again and bumping along the bottom. stuart: charles: 3% would be at this point. >> we are not in the immaculate recovery. charles: an amazing job convincing people things are rosy. stuart: if you control the establishment media. if they are your peanut gallery or whatever you call them you do okay with the public. you do okay. you can tell them it is great when it is not. zimbabwe broke, broke. the country has only $217 in its bank. here is a full screen to reiterate, $217 for the entire country. zimbabwe's finance ministers as after it paid all the civil servants, that is all that is left. he blames the country's bank account on poor economic policy by the president. how long will he stay alive?
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liz: this is a diamond resource rich country. what happened was they took a lot of property from the private sector to pay for pension that the turn of the century so that is what the history book shows, very corrupt country. stuart: when he wrecked the country. before a house is a great investment? i am buying the country today. he kicked out all the white farmers when he came in, highinflation, these guys had a $100 trillion bill, a $100 trillion bill, people who talk about cautionary tale for america, zimbabwe makes them extreme but that is how far it can go. liz: two thirty million% inflation. that is my calculator. stuart: in a few minutes it is the do or die for research in motion, the blackberry people and the blackberry 10 is going to be unveiled. we are following that and we have breaking news as it comes in. baby boomers supporting their grown kids and their own elderly parents and that is draining retirement funds.
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7,000 students drop out every school day. that's a line of desks more than 4 miles long. keep students in school. visit boostup.org and take the first step. . stuart: so you're approaching retirement age, late 40s to very early 60s. you will no doubt be pleased to see your stock doing well and your house gaining in value again. this is the good financial fortune that you have longed to see. you need it. pew research says your generation offers a lot of financial support to your children. one in four of you is the primary financial supporter of
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your adult child. the primary supporter. worse yet, many of you are also supporting your own parents. you are as pew says the sandwich generation. and how are you able to shell out all this money you ask? well, by tapping into your own retirement funds. far too many are raiding their 401(k)s, paying the tax, paying the penalty, drawing down your own pension funds to help your own kids and grand and grand-dad too. it is great to see the stock in housing rallies. but wouldn't it be really good to see an economic policy that gives our youngsters jobs and growth as well? this is it. this is a big day. do-or-die hour for research in motion. just a couple minutes from now, it will unveil the much anticipated blackberry 10. that's a smart phone that will likely decide the fate of the
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entire company. all right, nicole, prior to the release of d details, where is the stock? nicole: i feel like i have the dice and i'm throwing them, what's going to happen to rimm? we've waited a year and a half for the blackberry 10 and today is the day. stuart: yes, minutes from now. but that's interesting, we don't know the details of this new blackberry 10 yet, but the stock is up 4%, even though we don't know the details. i think that's very interesting. in our last hour, clayton morris said that rimm has a long way to go. he's our tech guru, and he was leaning on the die side for the company, not on the do side. what do you say charles? we don't know the details yet. maybe it is not fair to ask the question, but it really is on the line, isn't it? charles: it is really on the line. this is a huge huge hurdle to climb. listen, a lot of anticipation. the stock made 100% move. i wouldn't chase it here though. we will see. i'm inclined to lean towards
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clayton's point of view. stuart: i said to clayton look this is a business product. i use one, and i use it for texts and i use it for e-mail. so i'm sure it's got a future as a business product. liz: yes, it does. stuart: if it really is going to go places it needs to have a future with ordinary consumers with kids, it's got to have that. will it be able to do it? ? liz: it has a following in the government because it is one of the most secure systems in the world. law enforcement like the blackberries. they find it more secure than apple, although apple phones are making inroads into the federal government. charles: it doesn't have the bells and whistles, and it's losing its cache amongst corporate clients. they need a real revolutionary leap. i don't know if this product is it. they don't have a lot of time on their side. stuart: they need a new revolutionary leap, that's what you are looking for. charles: got to be something else nobody else has. stuart: we're talking about boeing. we have a new report from
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japan's airways and it says the batteries in the dreamliner were a concern months before the first fire was reported. this morning boeing reported a dip in profits from a year earlier. the company said it doesn't see a significant financial impact from the grounding of those dreamliners, but right now the stock is back to $73 per share. it's up a little, 73 bucks a share on boeing. to the big board, bad report on gdp this morning, but that's not really affecting trading that much. we're down only 14 points even p though the -- even though the economy contracted at the end of last year. top of the hour, i told you about the sandwich generation. a new survey from pew research about middle aged folks shows more are supporting their adult children and aging parents at the same time. on top of that, they are draining their retirement accounts to pay all of these bills. bad news, liz? liz: yeah, it is bad news. it would be sad if parents are draining their accounts to pay for their children's suvs or x-boxes or play stations and not charging them rent. i had to pay rent when i lived
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with my parents. it taught me a lesson. it taught me about responsibility and financial accountability. stuart: nicole, you are still there, aren't you? nicole: i am. stuart: you're a youngster, okay? how do you feel about in the years ahead you're going to have to support your parents and your youngsters? how do you feel about that? nicole: well, you know, it is really not about me. it is about the generation that's ahead of me. i think this is horrendous. i think liz is right on point, financial accountability is one key. how can the youngsters get ahead when they don't have the economy or the jobs or the opportunity? this is a catastrophe. stuart: look, this is all about growth. this is all about the policy of our federal government. we need a policy, charles, i'm sure you're with me on this, you've got to have a policy that produces 4 or 5 percent growth for the economy and 2, 300,000 new jobs each and every month. you've got to have it. charles: this is one of the reasons i was so upset about
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this whole argument about what was rich. you know what stuart? it's ridiculous. most people making $300,000 a year, they didn't come from rich families. if you come from a rich family like donald trump's kids, they don't make 300,000 a year. they came from families where everyone buckled down, did the right thing, they did the right thing and now more than likely they spend money to help out other relatives, it's an honor for me to help my mother out. it is an honor. but the idea though that somehow we would hurt the one part of our economy that actually could provide the kind -- you know, the kind of growth, so our kids do have a legitimate shot. the policies are against it. liz: charles is right. the white house's attitude that the rich started out life on third base is wrong. a lot of people fought to get to where they are, to the top of the ladder and they worked really hard since the age of being teenagers to get to where they are. that is what is dismissed time and again by the government. stuart: you are right. did i hear one last thought from
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nicole? nicole: people worked so hard in the generations up till now, they have accrued a nest egg. it is so sad they have to dig into it. now i almost feel like it is going to be like dynasty, but in the cheaper style where everybody just piles into one house because nobody can afford their own things. i don't know. i'm hoping for the best. but it doesn't seem so great. stuart: all right, nicole, we hear everybody. thank you one and all. later this hour, a fox business exclusive, a video made by a group of doctors and hospital workers. it is a parody. it shows hospital workers literally blocking the door to a hospital to prevent patients from going in. why? money. the doctors are trying to recruit their colleagues to join their organization, a group that pays doctors based on how much or how little they see patients under obama care. the fewer patients they see, the more money they make, hence blocking the door. this is an unintended consequence of obama care, and we have it for you, liz mcdonald broke this story.
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she has full details about 20 minutes from now, 10:23. chesapeake's energy chief, he's retiring, had a controversial tenure. he's under investigation for mixing personal and company business. but just because he's under investigation, it doesn't mean he isn't getting paid. he takes a golden parachute of 50 million dollars with him. for investors his departure is welcome news. after the retirement was announced the stock went up 10% and it is now up 8%. charles, you have been saying this for years. watch the stock when the chief retires. charles: if it goes up, then it's like good riddance. in all honesty, this guy was amazing. he built this company from nothing. but, you know what? it is sort of like a banana republic, sometimes when the revolutionary guy has the great ideas, once they get the power, they forget everything they preached. i think this is a welcome relief for almost everybody involved and the stock says it all. stuart: we should say even though a review of alleged conflicts found no improper conduct.
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no improper conduct. charles: you are right. there's no doubt it was a public relations disaster. stuart: this is a huge natural gas driller and they are the people who just opened up one of their wells to the epa. come on, test everything because we want to show that fracking is good. charles: an amazing company, and that's what makes it so unfortunate. this stock probably should be over $30 a share without this controversy. stuart: i think you are right. if the president and congress can't reach an agreement by march the 1st and they are not likely to reach an agreement, defense cuts will be on the way, 43 billion dollars could be cut from the defense budget this year. joining us now is general stanley mcchrystal, author of the book "my share of the task". this general ran the american forces in afghanistan, iran, all special forces. general, have i got that right, sir? >> well, i ran part of our special forces. i ran our counterterrorist forces in the region for about five years from 2003 to 2008. everything else is right stuart. stuart: that's a terrific
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credential sir any way you slice it and thanks for joining us. my question is this, if we go ahead with these military cuts, 43 billion dollars this year, are we suddenly going to see a lot of people coming out of the service, back into civilian life, a flood of new people in the economy? >> well, you will see a little of that. what more you will see is ships going and staying in port. vehicles not training with forces. airplanes not flying. and the force starting to hollow out. we have already made a number of defense cuts responsibly over the last couple of years and projected others out. i think this particular type of cut is irresponsible in the way that it would be forced on the force. stuart: you're a soldier. you are not a politician, but i'm going to ask you almost a political question. you think these cuts will be put in place, when push comes to shove? >> well, i'm the internal optimist. i think they are too stupid to actually go through, so i like to believe that sanity will prevail. stuart: okay. i have another question for you. this is from somebody who is completely outside the military world. it seems to me that drones are
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really winning, big-time. al qaeda seems to be on the run in the middle of the desert, chased down, hunted down by drones. am i going too far to say that drones are huge winners here? >> well, stuart, you wouldn't be going too far to say that drones are incredibly effective. they are good at reconnaissance. and they are also good at strike. but they have another unintended consequence in often creating resistance or opposition to what america does around the world. so drones are one of those things that we have to use with extraordinary care because some of the opposition that we get in parts of pakistan and other parts of the world come from a perception of american arrogance in the use of things like drones. so it's got to be a very mature balanced approach. stuart: would it be true to say that we're withdrawing boots on the ground to fight al qaeda and using high in the sky look down shoot em stuff? >> well, you won't win a war
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that way because it can only be part of a strategy, and president obama has made that clear. but in a place like afghanistan or even pakistan, what you are really counting on is the host nation forces standing up and doing their part to control areas of the ground on the population. and then in combination, they can be very effective. stuart: general, i want to talk about your book because i have actually read much of it. my share of the task. it is a good book. very easy read. to me it was almost like a thriller. it was great stuff. i have a question for you, you are obviously a very talented man, in the military, brilliant organizer, how are you going to put those talents to work in the civilian life? >> well, it's interesting, when i left the service, i cofounded a group called mcchrystal group, and what we do is we're about half former special operators and half bright young civilians and we work with some major corporations, hewlett-packard, scotts miracle gro, sea gate technologies and we help them make the kinds of changes that we found were necessary
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particularly in the joint special operations command in iraq from 03 to 08. i found the similarities striking. stuart: what kind of things? what do you get from special forces organization and command that you can apply to a major corporation? >> what we found in iraq, particularly, was that the situation had changed. it was faster. we were facing a networked enemy. it was extraordinarily effective. and we had to change the centralized system that we used, make ourselves into a network, in which information moved instantaneously, and then we had to decentralize decision making so that people very close to the problem could make decisions, but do it within the context of what we called share consciousness, understanding the big picture. it almost turned upside down the traditional hierarchy that i had grown up with in the military. what we find in civilian corporations is many of the same challenges of siloed organizations, difficulty communicating, sometimes ponderous decision-making
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processes that don't produce exactly the nuanced decisions that they need. stuart: general stanley mcchrystal, management consultant and author, great book, thanks for joining us general. it is an honor to have you. >> stuart, my honor, thank you. stuart: thank you, sir. we hear from facebook after the bell today. that will be their earnings report. where's the stock, nicole, now? nicole: oh, well, take a look here. still above $31, 31.42, a gain of 2%. certainly has been running up recently. now, we have the analysts all still waiting to hear more of the ad revenue. that was a talking point we have talked about many times. that was something that everybody potentially -- remember when mark zuckerberg could have sold shares and didn't? i believe it was in middle of november sometime, it was in the 20s. he already made a lot of money by holding on these 10 bucks. now at $31, than $21. stuart: i think there's a lot of people who have faith in
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facebook as a long-term project and don't want to dump out at 30. nicole: don't forget, how many users they have. it's such a nice great basket and opportunity. stuart: you keep coming back to the question surely you can make a ton of money out of 960 million users, can't you, somehow or other? nicole, thank you very much indeed. movies like bullet to the head advertise on high rated shows and glorified by hollywood, and next, my take on john stewart getting called out on it. >> or is it the idea that i've seen enough movies to know that if i go in someplace and do this, you know -- >> you know, you take a look at, you know, right now everywhere you look there's a commercial for a movie, a movie called bullet to the head. we're still in a culture -- >> that's a working title --
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stuart: toyota recalling more than a million vehicles in the united states. the popular corolla because of airbags that can improperly inflate. it is also recalling a quarter million sedans for faulty front windshield wiper. isn't affecting the stock, still at 96 bucks a share, up about 50 cents today. good news for amazon this morning, all about the profit margin. all you need to know is the stock is up big. five brokerages raised the target price on the stock, including citi, who raised the target to $300 a share. it's 269 right now.
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housing is a bright spot, yes, here's an example, the homebuilder ryland group reported quarterly results better than expected. new ordered jumped 64%. it is down 85 cents. coming up, my take on hypocrisy. i'm taking on jon stewart and al gore. you will like this.
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stuart: all right. what you're seeing now is the debate over gun control. it resumes today. it's resumed already on capitol hill.
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later on, we're going to hear from wayne la pierre from the nra. we will also hear from gabby giffords. i think we have pictures coming in from the rimm presentation of the blackberry 10. they have just started. this is what's happening right now. they are introducing the blackberry 10 as we've said all morning, this is do-or-die for research in motion. what are the properties of the blackberry 10? good enough to get them back on to the front burner of the smart phone business? we shall see. when they get the details out, we will bring them to you. jon stewart, al gore, perfect together. joined at the hip of financial hypocrisy. yeah, really. here's my take and the full story. jon stewart was discussing gun control. he's in favor of it. his guest bob costas suggested that violent movies and video
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games should take some of the blame. that was awkward to say the least because during the preseating commercial break there was an ad for bullet to the head. sylvester stallone's gun violence extravaganza. so the pro gun control jon stewart is sponsored by violent movies. al gore was discussing the sale of his tv network to al-jazeera. matt lauer asked him why he'd sold out to big oil. mr. gore is an ardent antifossil fuel campaigner but got a reported 100 million dollars from oil -- which owns al-jazeera. al gore did not have an answer except to say he understood the criticism. he just doesn't agree with it. fascinating, isn't it? the left says one thing in public, but takes money from their supposed opponents. on this occasion, full credit is due to the establishment media, which exposed the hypocrisy.
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the washington post details jon stewart's dilemma today, and nbc did the gore interview. if only we could get jon stewart to challenge his hollywood bankers, wouldn't that be something? twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. can youlyric can.aid do this? lyric can.
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stuart: research in motion is
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presenting its new blackberry 10. you are looking at the presentation right now. so far we've heard that they're going to have a faster browser on the new blackberry 10, a better camera, an all together revamped blackberry. that's what we know so far. the stock is still moving higher. last quote i got, it's up about 5%. okay? they are listening closely to what the gentleman is saying about the new blackberry 10 and the stock is up 5%. likes what they are hearing so far. fox business exclusive for you right now, a video made by a group of doctors and hospital workers, it is in fact a parody. it shows the doctors literally blocking the door to a hospital. they are preventing patients from getting in. take a look at this. we will explain it in a moment. ♪
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stuart: let's explain, shall we? liz maacdonald -- mcdonald is o that story. what is this group of doctors? liz: they are in what's called an accountable care organization, that's government speak for helping to reduce costs under government health reform. so what we're seeing is the doctors at the hospitals telling fox business, the reason why you're seeing workers barring that woman from being readmitted to the hospital is this, the less patients readmitted, the less exams, tests or referrals, the more government medicare money there is for the so called aco, the accountable care organization for the doctors and hospitals. stuart: by barring the hospital door, preventing patients from getting in, the doctors make more money. liz: that's correct.
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they also could get bonus money if they adhere to the federal quality and cost control. stuart: so it's a parody critiquing obama care. saying this is working against the interest of patients. liz: this is according to to doctors at the hospital. it rewards the hospitals and doctors for doing less care. and so what the hospital though within morristown medical center is saying, it's saying look, this is a fun spoof about preventing readmissions as you saw. it is not meant as a mockery. it is about working together as a partnership, taking better care of patients. we are just having fun with this. but there is a seriousness underneath the video. that's according to the hospital. stuart: it's interesting this kind of stuff is out there being put out -- i mean it is a parody, but it is a serious message, obama care doesn't work in the interest of patients. liz: what it's about is this is the future, the face of healthcare in this country. these acos are a key cornerstone of obama care, health reform. the government just launched 106 new acos, operate in 40 states.
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the name of the game is the boomers are going to be treated in their homes. manage your illness at home. physicians assistants or nurses will be helping you because there's a looming doctor shortage. medicare is now set to surpass defense spending in this country. it is going to be the second biggest line item in the budget for the federal government. that's the name of the game for obama care. stuart: charles? charles: listen, i thought they picked a perfect song though; right? ♪ looking for love in all the wrong places ♪ stuart: you know, it is a pretty powerful parody. once you get to grips with what they are saying. charles: president obama does acknowledge medicare problems, even though we don't have a spending problem. this goes beyond a fiscal thing. i mean, this is real -- liz: that's right charles. the doctors are telling me it is totally opposite of what the president said he wanted, more care under health reform. this is actually rewarding for less care. stuart: this new just in on the rimm meeting. they are going to change their corporate name to blackberry. we all know they put out the
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blackberry and that's the name of the company, none of this research in motion stuff. okay? the stock though they are listening to very carefully with what's going on with the new blackberry 10. seems so far they like what they are hearing. look at the big board, down 24 points for the dow. that's not a very big reaction to the news this morning that our economy is contracting, at least it did at the very end of last year. maybe everybody's waiting for the 2:15 announcement of what bernanke is going to do with all that money printing in the future. maybe that's why the market -- i think you will agree with this -- that's why stocks are way up there, isn't it? is that the truth charles? charles: that's one of the reasons. i'm telling you that ben bernanke factor hasn't kicked in as much in the market as it has i think with housing. stuart: really? the little guy is coming back, isn't he? charles: absolutely. they are coming back. you know what? every time they come back in droves, there's always a hiccup to test their resolve, they must be prepared for that as well. stuart: charles payne right again everybody.
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all right. google's youtube is in talks -- i find this fascinating. google's youtube in talks to allow video creators, content makers, to charge people for viewing content that they up load on to youtube. the move is supposed to happen later this year. any impact on the stock, nicole? nicole: the stock is up 1/3 of 1%. this is paid subscriptions. it could be a la carte, it's paid subscriptions for channels. it is an interesting concept from youtube. they have obviously gained in popularity and why not have their own channel. stuart: so i could create my own channel, put it on youtube and charge people to watch my channel on youtube. that's what google is suggesting here. nicole: you have one subscription, i'm in. stuart: rimm, where is the stock? nicole: at the same time i'm keeping an eye obviously on the conference here that's going. now we're taking a look at the stock, it is up 3 1/2%.
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hearing more details about the new blackberry 10. i like how you said no more of that research in motion stuff, just blackberry now. all about the branding. stuart: now it is only up 3 1/2%. it was up 5% not too long ago. they are going to have a faster browser, a better camera, revamp the blackberry. it's going to be able to do true multitasking, they say. and it is going to be called blackberry, not rimm. nicole: there's a lot of people who are really -- have a lot of allegiance to blackberry. they love the safety, the security, the e-mails. there are a lot of people who are not iphone people. stuart: where is the revolution, where is this brand new big new deal that will rescue the company? i don't think i've seen it yet. but i'm waiting to hear from our tech people who know more about it than i do. stock is up 3 1/2%. the dow remains very close to hitting that all-time high. the average investor is jumping back into the markets. so how do you cash in on the rally? or have you already missed your chance? we're going to deal with that next.
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plus get this document shredder free-- but only if you act right now. call the number on your screen now! [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. stuart: precisely three minutes ago we said no revolutionary announcement from research in motion, just yet. we have not seen anything that makes the blackberry 10 a true revolution, a true turnaround for the smart phone from the rimm people. that's why the stock was up 5%.
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but now is up only 1 cent. that is quite a drop in the last few minutes because we're waiting for the revolution. haven't seen it yet. the judge is with me. i'm not waiting for the revolution -- >> we're waiting for a revolution. stuart: this one is not. [laughter] stuart: the dow is closing in on 14,000 and the average investor back in the market. so all right, how are you going to make money out of this? dow near 14,000. how do you make money? joining the company from portland, oregon, keith fitzgerald with money map press and in chicago larry levin with trading advantage. to you please keith, give me some ideas. how am i going to make money? go. >> well, i think the easiest thing to do particularly when the markets are looking this way, is you shift your focus from what the world wants to what the world needs. for two reasons, one you are building in demand and two you are building in defensiveness. one of my favorite choices is very simple, energy. we have a national mandate.
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pipeline, double digit growth, compound annual growth, high dividend, good cash flow, on the hunt for acquisition, a lot of cash, i don't think you will go wrong with this one over time. stuart: name of it again? >> kinder morgan pipeline, kmp. stuart: got it. it's like a toll road, you push stuff through and take your piece, is that it? >> very very simple business. put stuff into the pipeline, charge money, unpack it at the other end and get a big dividend. stuart: you own it? >> yes i do. i own it. the family owns it and we're buying more of it. stuart: larry levin, you're a trader, you are in and out real fast. can you give money making strategy to our viewers who may not be shorting the yen or something? >> sure, if you want a little bit of a longer play, then obviously equities are the way to go, not the futures market that trade behind me. i'm a big fan of groupon. taken a huge hit. it is a chicago based company. it is kind of for the most part sitting on its lows. i'm a big fan buying things on the cheap, not buying things on the high.
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with that being said, groupon is a great play. came down from about 35 or 40 dollars, trading around 5 dollars. the risk reward even if you held it all the way down and went to 0, which obviously it is not going to do, that's a $5 risk per share. i'm a big fan of small risks like that. that's why i like that one. stuart: do you own it? >> i do own it. stuart: did you buy it at 20 and followed it down? >> no, i waited till it kind of found a bottom which is around 3 1/2 dollars. i tried to buy it around there. i chased it. i end up finally buying it between 4 and 5 dollars. now it is sitting about $5.50. the high of where it's been over the last month or so but certainly well off the highs and still in a good position for people to get in if they wanted to. stuart: larry levin, you are a smart guy. good stuff. thank you very much indeed. charles, tell me, how am i going to make some money? charles: they both brought up the great point. the point keith brought up about chasing performance. it is hard for a lot of people but i think don't be afraid of buying stocks if they have great fundamentals. the other side of this picking a
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bottom what larry levin is trying to do. he's got some serious nerve there. you know, listen, i'm not as upbeat on groupon, and i wouldn't use the word great to describe it, but you can certainly argue that it's cheap. stuart: you realize that larry is still with us. charles: i know. i love larry. that's why i mentioned it because i think they both brought up two great points that viewers are grappling -- grappling right now. a lot of times stocks don't move because they are not supposed to move. stuart: liz? liz: core labs. it analyzes oil and gas reservoirs for the energy industry. it was trending towards 52 week highs. i do like the fundamentals. i do worry we're operating in an air pocket in the markets because of the federal reserve and what they are doing and whether the federal reserve moves out of the economy. stuart: we're about to talk about the federal reserve. but larry levin, keith fitzgerald, charles, liz, thank you very much indeed for giving us some ideas on how to make money when the dow is close to
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14,000. we appreciate it. thank you very much indeed. as i said, we're going to talk about the federal reserve because this afternoon we're going to find out whether bernanke is going to keep on printing a lot of money. the judge is with us. now, we all know that the judge is a fierce opponent of the fed money printing, virtually everything else in our economic world today. i want to ask you, look, i think the dow is as high as it is because ben's printing a ton of money. >> oh i agree with you. because the people that use the stock market like cash, no matter the source. but we're talking about the long-term prosperity or lack thereof by this printing. stuart: but if you were to -- you want to make money, if you've got a portfolio, despite your principles, your free market principles, you would want ben to keep on printing, wouldn't you? >> yes, and if i were a bank
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into which he could deposit cash, stated differently, add some 0s to my ledger sheet then the bank will make money. so the initial reaction to the influx of cash is more economic activity, more buying and selling, and people can make quick profits. but the long-term is the prospect of the government's thumb on the scale of the free market is inflation because the value of everything goes down as a result of adding cash to the money supply. stuart: wait a second. >> you believe this and i know you believe this. stuart: but where is it? the japanese have been printing money, more than we have, and they're going to do it all over again. no inflation. they're fighting deflation. >> these things don't happen overnight. stuart: it's been four years since ben started printing. >> it has been four years. it will produce a bubble or it will produce inflation or it will produce both. what's wrong with the free market? what's wrong with the government not making these decisions that buyers and sellers and consumers and investors should be making?
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stuart: there is a counterargument to the inflation theory. the theory is this money being printed merely replaces the money that was lost in the great crash, the great panic and the recession. it simply replaces it. it doesn't add it to the money out there. it replaces the loss. >> how is the money going to be paid back? when woodrow wilson borrowed 30 billion dollars to fund world war i, we have yet to pay that back. we're still paying interest on that 1917, 30 billion dollars borrowing. that's the way the government operates. great grandchildren will still be paying interest out there. stuart: you are confusing our debt with the federal reserve's books. they've got 3 trillion dollars on the balance sheet at the moment. >> if the federal reserve is buying bonds from the treasury, how is the federal government going to pay that back? stuart: hold on a second, judge. >> something happened? stuart: no, no. nicole, can we at this point say
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that the blackberry introduction of the blackberry 10 is a flop? >> you know what? be careful. don't call it a flop so fast. you can say buy on the rumors sell on the news. right? why don't you wait and see what all the experts, the technology experts say? you could say blackberry, the stock, that's their new name now fizzled. it is down 5.5%. when it had been up 5% earlier today. stuart: it is a fizzle. nicole: fizzle, drop, not a good day. stuart: to answer the judge's question, two devices coming out, one touch-screen, one key board. are you happy? nicole: i'm happy. i like it. >> i agree with nicole. i don't think you should blast this corporation because of the pr performance of one executive. let's see if these units sell. nicole: you left out one really key factor. you know, we have talked about e-mail and talked about the security. we have talked about some of the pros for blackberry, another key pro for blackberry, when you drop it, the screen doesn't
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crack. i'm not even kidding. that is a big deal. liz: that's a big deal. nicole: i know people who have iphones and i touches with screens cracked. liz: then you have to buy a new one. stuart: charles and i are somewhat skeptical that the non-cracking seen is a very -- non-cracking screen is a very big deal when the life of the company is at stake. >> if your screen got cracked, and you had to pay to fix it, you would be screaming about it for a month. stuart: that's true. i want to see rimm's stock again, please. because we've gone from up 5% -- nicole: it was at 16.62 at its highest point today. stuart: it is now down 7%. literally 6 minutes ago i said look, there's no revolution here. this is not a revolutionary announcement. this is not something that's really going to turn this company around.
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and as soon as we said that, down this thing goes. down 7%. market agrees. nicole: i have one last thing to say, don't sound the death watch music. the other thing you should note is research in motion isn't necessarily looking for the revolutionary greatest product ever, they are trying to hit a corporate niche, people key in security and e-mail. they are not trying to get the kids that are cool on their apple and samsung. that's not their group. stuart: the stock immediately went down the very moment the two products were revealed. at that moment, down went the stock. nicole: good point stuart. charles: people were on their blackberry saying sell, sell, sell. stuart: yes. any last comment from you judge? >> let them sell the stock. stuart: you know, i'm going to give you some more time. not to mess around with the queen's english.
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>> all right. in my experience, i do better on the buttons, and i think a lot of people do, that's probably the reason they are introducing both. i can type a lot faster with the keys than i can with the virtual, but my nieces and nephews are so fast on those virtual keys i can't even follow their fingers. stuart: neither can i. judge, that was pretty good. i've got to say. >> pleasure. stuart: totally wrong. [laughter] stuart: brian kilmeade is with us. sound the trumpets please. brian, welcome back to the simulcast. i have various subjects. all on sports. >> go. stuart: alex rodriguez, hot water after the miami new times reports that he's got -- he bought performance-enhancing drugs. my question is we're a financial program. will the yankees void his contract and save themselves a 100 million dollars? >> 114. i talked to two separate agents, talked to a lawyer this morning. here's the key, he's hurt again
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with a hip injury. if they could show flat out that the hip injury is related to taking performance-enhancing drugs, hgh, they could say this is not living up to the contract and ideals and moral causes in that contract. now, if he again lied, baseball's got a problem with him. 50 games first infraction, that's the first time. 100 games, second time. third time you are looking at a ban. the yankees aren't going to stand by him. word is thewwant out of the contract. look for them to try to void it. look for the union to try to stop it, but he's got very few people on his side right now. and don't ever consider him a home run king, even if he happens to pass ruth and pass bonds and pass aaron. stuart: wow, you are steamed. next one, there's a fellow called ray lewis, plays for the ravens. he's denying reports that a product he used deer antler spray to speed up his recovery from an injury. deer antler spray, you have to tell me about this.
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>> number one, when i look at a deer with antlers, i don't think to myself let me break off one of its horns and rub it on an injury i have or my troubled ankle. i'm amazed at the technology that feels as though antlers are going to make you feel better. evidently it has some agents in it that are illegal and on the banned list. he should know better number one. but without blood tests they can't prove it. look for video to emerge that evidently shows lewis hearing his voice asking for a prescription advice, asking how to put it on, when to prescribe it and him saying i have to get back on the field. but at 37 in his last game, with other players, perhaps doing something similar, who might not pass a blood test, if they were tested for hgh, don't look for the 49ers to protest. therefore i think he gets by. but this puts more pressure on the nfl to do blood tests which they already agreed on. congress is pushing them to do it. if so, look for the average lineman to weigh in 50 pounds
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lighter next year. stuart: whoa, that's interesting. good stuff, brian. one more thing. my interview with emmitt smith was vastly superior to yours and you know it and here's a reminder. >> during this interview about 250 people passed by and they think we hang out. there's brian kilmeade and emmitt smith hanging out what are the chances of this relationship flourishing? >> i think the chances are pretty good. we have to stay in contact. stuart: you are the all time leading rusher. >> do you know what that means? that means i rush for more yards than anybody in the history of the game. that's what it means. stuart: that's fantastic. >> it's not like a soccer term. stuart: we will get to that in a minute. >> you see brian, case closed, mine was far more interesting than yours of the interview in the front of the car. >> i was in a lincoln with a moon roof. i went around the block with him. we blew a red light together. but i put -- stuart, what i did is i put this to the test. i asked our listeners on
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kilmeade and friends.com and tweeted out asked did you and your staff, i said we put them side by side, and we're going to have the final tally tomorrow. maybe we will reveal it on fox and friends or kilmeade and friends again. but so far by -- is this true? so far i am leading according to the american people in our international listeners and viewers, 65% like my interview better. 30% like your interview better. and so far both has 4% of the vote. stuart: look, i haven't even started to mobilize my troops yet. we haven't even told our people. >> mobilize. stuart: we're mobilizing. okay? did we put it on the screen? how to vote? we did? vote people, vote. but brian, to conclude, emmitt smith was a great guy. i thought he was a real gentleman. i thought he was a terrific fellow. >> even when he was playing at the height of his game, he was thinking about life after the game. so many other guys should be doing that because about 70% of these professional athletes get out of the game and within five years are flat out of money.
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that won't happen to that guy. stuart: all right, brian, we appreciate you being with us. great simulcast can we do this again? >> i would love to do it again. i think i look great on radio. stuart: don't forget everybody vote for me as the superior interviewer of emmitt. >> don't sway the witness. how dare you? ask the american people to watch both and make their decision. stuart: i'm climbing a tough ladder here trying to convince the american people that i know something about american football, which i do not. okay? brian, see us again soon. thank you very much indeed young man. >> thank you. kilmeade and friends. stuart: cue the organ music, for the estate tax, getting more and more expensive to die. more than 20 states charging estate taxes on top of the federal estate tax. so which states should you spend and in which states should you spend your final days? we will tell you next.
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stuart: you remember two weeks ago we brought you an american silver teapot by paul revere. the bureau was supposed to sell between 700 and 900,000 bucks, instead it went for 2.2 million. teapot, 150,000 we thought. no $230,000.
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very impressive. congratulations to christie and for our advertising for christie's. we've talked a -- we've talked about a lot of people about fleeing states to pay income state. there are now 21 states that will make you pay separate additional taxes on your estate when you die. they're on the map. 21 of them, i believe, now have state estate taxes. we have seen tax refugees from income taxes. are we now going to see death tax refugees? we must, i guess? liz: yeah i mean they get you coming and going. when one state does it, the others copy cat it. the worst states to die in are new jersey and maryland, federal state, and inheritance tax assessed against your heirs. stuart: no income tax in florida or estate tax in florida as
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